Transport is becoming iTransport with more big data rolling in

Transport is becoming iTransport with more big data rolling in.

There can be no misunderstanding; the transportation and logistics industry is a disruptive industry. Things have never changed so fast as they have over the last five years in an industry that has always been marked as ‘conservative’. The explosive rise of Internet consumer sales has forced transport companies to change their internal processes, warehouse structures and times of delivery. The consumer dictates, using mobile phones to visit e-shops. Next day delivery from the UK to Germany? Yes, we can. And so, thanks to the Internet, the economic forecast for transport companies looks bright with extra demands for transportation. As a company, you can join the race, but only if you have the right equipment and the technical set-up.

 

Digital marketplace

The more unexpected demands you receive, the more trailers and drivers you need. The transport optimisation report by ECR Europe claimed earlier that 35 up to 50% of vehicle capacity is is substantially under-utilised. This business inefficiency can be improved if you use another Internet development; Freight Exchange platforms. On these digital marketplaces for transport, you can sign up and bid a price for cargo that fits the size and the route of your trailer. An empty trailer doesn’t make money for your company, but using data to connect the location of your trailer with the location of cargo does. At the end of a modern day, it’s all about flexibility and your ability to respond quickly. This is why IT (Information Technology) and Big Data is becoming essential to stay in the race; slowly changing your company from Transport to iTransport.

 

DDDM

To make your part of the supply chain most efficient, you will need more data information. Data about your trailers, your drivers, your cargo and your partners. In 2016, a 3PL survey conducted by Cap Gemini, Penn State University and Penske Logistics found that “the effective use of big data will become a core competency of supply chain organisations.” With the use of data, transport companies can improve their tactical and operational decisions. (source FleetOwner) This is called DDDM: Data Driven Decision Making. If you know how to use data from various sources, you can create a competitive advantage, combining technology with your expertise to gather and analyse information. Make the right capacity match in real-time between available cargo and your trailers, and you can have more full trailers driving home, improving your profitability.

 

Fleet management, data and telematics

To become more competitive, you must gather all sorts of data. At first, you’ll need telematics on your trailers. According to a recent Frost & Sullivan 2017 report, the CV telematics market is expected to grow at an annual rate of 14,2 %. Countries as UK, France, Germany and the Benelux have telematics installed, covering almost 70% of the market. Southeast Europe with countries a Bulgaria, Romania, Slovakia, Hungary and Croatia are new upcoming areas that will embrace telematics in the very near future. With telematics you can receive data about the performance of drivers and vehicles, track your trailer, traffic information and navigation and decrease paperwork by sending a digital proof of delivery.

To connect your trailer fleet data with available shipments that are waiting for your bid on a Freight Exchange platform, you will need a fleet management system. These data terminals are becoming increasingly important for transport and logistics companies, even for smaller transport companies. But how do you choose the right system? Contact TIP to discuss the future of your transport company and how to make the right choices, based upon user experience.

 

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